Cimpress plc (CMPR - Free Report) reported second-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.14 per share, which surpassed the Zacks Consensus Estimate of $1.24. Cimpress incurred a loss of 46 cents per share in the year-ago quarter. Following this better-than-expected performance, shares of the company have gained 1.9% since the earnings release on Jan 31.
Top-Line Details
Total revenues in the fiscal second quarter were $921.4 million, reflecting an increase of 9% from $845.2 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line beat the Zack Consensus Estimate of $901 million.
Segmental Information
The National Pen segment generated revenues of $130.6 million, up from $120.6 million in the year-ago quarter. Our estimate for the quarter was $108.5 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $485.1 million compared with $437.7 million in the year-ago quarter. Our estimate for the quarter was $481.6 million.
The Upload and Print segment’s revenues increased to $258.2 million from $237.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal second quarter, PrintBrothers’ revenues increased to $165.1 million from $148.6 million reported in the year-ago period. Our estimate for the quarter was $175.7 million.
In the fiscal second quarter, the Print Group generated revenues of $93.3 million, up from $89.3 million reported in the year-ago quarter. Our estimate for the quarter was $102.9 million. Revenues from All Other Businesses were $60.3 million, in line with the year-ago quarter. Our estimate for the quarter was $62.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $463.4 million, up 1.8% on a year-over-year basis. Marketing and selling expenses totaled $211.8 million, up 3.3% year over year. Total general & administrative expenses were $48.8 million, down from $49.8 million reported in the year-ago fiscal quarter.
Gross profit increased 17.4% year over year to $458 million. The margin was 49.7%, up 360 basis points. Net interest expenses rose 7% to $30.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Cimpress had $274.3 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,626.3 million in the first six months of the year.
In the same time, net cash provided by operating activities was $217.2 million compared with $55.8 million in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 7% compared with at least 8% predicted earlier and organic constant-currency revenue growth to be at least 5%.
CMPR predicts operating income to be at least $230.5 million for the fiscal year and adjusted EBITDA to be at least $455.0 million.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 15.1% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 12%.
The Zacks Consensus Estimate for AOS’ 2024 earnings increased 1.5% in the past 60 days. Shares of A. O. Smith have jumped 12.8% in the past year.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.8%.
In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2024 (ending June 2024) earnings has increased 0.3%. The stock has risen 57.8% in the past year.
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Cimpress plc (CMPR - Free Report) reported second-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.14 per share, which surpassed the Zacks Consensus Estimate of $1.24. Cimpress incurred a loss of 46 cents per share in the year-ago quarter. Following this better-than-expected performance, shares of the company have gained 1.9% since the earnings release on Jan 31.
Top-Line Details
Total revenues in the fiscal second quarter were $921.4 million, reflecting an increase of 9% from $845.2 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line beat the Zack Consensus Estimate of $901 million.
Segmental Information
The National Pen segment generated revenues of $130.6 million, up from $120.6 million in the year-ago quarter. Our estimate for the quarter was $108.5 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $485.1 million compared with $437.7 million in the year-ago quarter. Our estimate for the quarter was $481.6 million.
The Upload and Print segment’s revenues increased to $258.2 million from $237.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal second quarter, PrintBrothers’ revenues increased to $165.1 million from $148.6 million reported in the year-ago period. Our estimate for the quarter was $175.7 million.
In the fiscal second quarter, the Print Group generated revenues of $93.3 million, up from $89.3 million reported in the year-ago quarter. Our estimate for the quarter was $102.9 million. Revenues from All Other Businesses were $60.3 million, in line with the year-ago quarter. Our estimate for the quarter was $62.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $463.4 million, up 1.8% on a year-over-year basis. Marketing and selling expenses totaled $211.8 million, up 3.3% year over year. Total general & administrative expenses were $48.8 million, down from $49.8 million reported in the year-ago fiscal quarter.
Gross profit increased 17.4% year over year to $458 million. The margin was 49.7%, up 360 basis points. Net interest expenses rose 7% to $30.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Cimpress had $274.3 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,626.3 million in the first six months of the year.
In the same time, net cash provided by operating activities was $217.2 million compared with $55.8 million in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 7% compared with at least 8% predicted earlier and organic constant-currency revenue growth to be at least 5%.
CMPR predicts operating income to be at least $230.5 million for the fiscal year and adjusted EBITDA to be at least $455.0 million.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 15.1% in the past year.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 12%.
The Zacks Consensus Estimate for AOS’ 2024 earnings increased 1.5% in the past 60 days. Shares of A. O. Smith have jumped 12.8% in the past year.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.8%.
In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2024 (ending June 2024) earnings has increased 0.3%. The stock has risen 57.8% in the past year.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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